Ashley focusing Frasers eye on Hugo Boss
Hugo Boss shares have risen
Mike Ashley’s Frasers Group is said to be considering a bid for top-end fashion brand Hugo Boss.
Shares in Frankfurt-listed Hugo Boss jumped 6%, valuing the business at €3.2bn, on the back of the speculation.
Frasers has already built up a 15.2% stake in the business and the Telegraph reports that it is keen to add Hugo Boss to its portfolio which includes House of Fraser, Sports Direct, Flannels, USC and Jack Wills.
There is speculation that French luxury conglomerate LVMH, home of Louis Vuitton, Givenchy and Christian Dior, could also make a move for Hugo Boss.
The chairman of LVMH, Bernard Arnault, has been building his own stake in the business in recent months using investment vehicles controlled by himself and his family.
Frasers is known for taking strategic stakes in businesses, which does not necessarily mean an offer will be made.
It also has a 36.8% stake in luxury house Mulberry. Despite this being over the usual 30% threshold at which a formal takeover offer is usually made, Mulberry already has a majority shareholder in the investment vehicle for Singapore’s Ong Family, which owns 56%.
Until recently it held a 25% in mid-market fashion chain French Connection but offloaded the shares in February.